No More N1,360/kg: Retailers, Depots Release Fresh Cooking Gas Prices Nationwide
- Cooking gas prices in Nigeria have dropped by up to 40% since June due to improved supply
- The NLCGA warns that long-term price stability depends on effective implementation of the Petroleum Industry Act
- Stakeholders aim to boost domestic gas consumption to five million metric tonnes by 2030
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Cooking gas prices are declining across Nigeria following improved domestic supply and coordinated interventions by the Federal Government, terminal operators, off-takers, marketers and industry regulators.
The price reduction, which has reached as much as 40 per cent from the June peak in some markets, is offering relief to households and small businesses that had been hit by a sharp increase in the cost of liquefied petroleum gas (LPG).
Source: Getty Images
Prices retreat after June shock
According to the Nigeria Liquefied and Compressed Gases Association (NLCGA), the national average price of refilling a 12.5kg cylinder stood at about N1,360 per kilogram in February.
By June, however, the price had climbed above N2,000 per kilogram, reaching as high as N2,300 in some locations.
At the peak, refilling a 6kg cylinder could cost about N13,800, while consumers requiring a 12.5kg cylinder faced bills of up to N28,750, The Nation reports
The surge was driven by supply constraints, higher logistics costs and broader market pressures, placing additional financial strain on households and businesses dependent on LPG for cooking and commercial activities.
Stakeholders move to restore supply
NLCGA Executive Secretary and Chief Executive Officer, Lanrewaju Baiyewu, said sustained engagement among government agencies, local producers, terminal operators, off-takers, marketers and regulators had helped address constraints affecting domestic LPG supply.
He said the latest price decline showed the impact of improved availability, but warned that long-term stability would require stronger implementation of the Petroleum Industry Act (PIA).
According to Baiyewu, consistent implementation of the PIA remains critical to preventing recurring supply shortages that often trigger sudden price increases.
Global prices still a risk
Despite the improvement, domestic LPG prices remain exposed to international market conditions.
Baiyewu noted that the international pricing benchmark to which domestic gas prices are aligned makes consumers vulnerable to movements in foreign exchange rates, global energy prices and logistics costs.
Industry players are therefore investing in storage, transportation, cylinder production and distribution infrastructure to strengthen the domestic supply chain and reduce the impact of future disruptions.
Push to expand gas consumption
The NLCGA is targeting domestic cooking gas consumption of five million metric tonnes by 2030 under its new leadership.
The association is also promoting compressed natural gas (CNG) as a preferred fuel for mobility under the government's gas-for-mobility initiative.
Source: Getty Images
With road transport accounting for a major share of the movement of people and goods in Nigeria, industry stakeholders believe wider adoption of gas-powered buses and haulage vehicles could eventually help reduce transportation costs.
For households, however, the immediate priority remains sustaining the LPG price decline and ensuring that improved supply translates into more predictable prices nationwide.
Cooking gas price crash by 39 per cent
Legit.ng earlier reported the recent drop in cooking gas prices across Nigeria, where costs have fallen by up to 39% due to improved supply and government interventions.
This significant reduction offers a glimmer of hope for countless households grappling with rising energy expenses, allowing them to breathe a little easier as they navigate their daily lives.
Source: Legit.ng
